As governments and businesses across the Middle East drive forward their economic transformation agendas, PwC Middle East has released a new report that explores the key role of sustainability in shaping future-ready business strategies.

PwC Middle East’s latest report, “Embracing sustainable transformation: The path to business excellence” provides valuable insights into how leading organizations embed sustainability into their transformation journeys, enhancing efficiency, resilience and long-term value for stakeholders.

The report comes at a pivotal time, as national visions such as Saudi Arabia’s Vision 2030 and We the UAE 2031 drive the integration of environmental and social impact considerations into core business practices, an essential step toward achieving sustainable growth in the region.

Riyadh Al-Najjar, PwC Middle East chairman of the board and Saudi Arabia country senior partner, said: “Saudi Arabia’s transformational journey demonstrates how economic diversification, business growth, and sustainable development can go hand in hand. As the Kingdom creates new industries, unlocks innovation and enables a more inclusive, sustainable future for generations to come — businesses have a unique opportunity to align with this vision by embedding sustainability into their corporate strategies, operations, and culture.”

From aviation to urban development and industrial manufacturing, organizations align their sustainability goals to future-proof operations and deliver impact. The report features real-world examples of this shift in action:

•Saudi Aramco advances industrial transformation through investments in carbon capture technologies and expanding its renewable energy portfolio.

•Etihad Airways enhances fuel efficiency and invests in sustainable aviation fuels to align with the UAE’s decarbonization goals.

•Aldar Properties incorporates sustainability into its project development strategy, achieving high Estidama ratings for efficient urban development.

•Masdar City stands as a model of sustainable urban development, offering a free zone with attractive tax incentives and access for businesses focused on clean energy solutions.

 Tamer Elleisi, PwC Middle East transformation management consulting partner, said: “Embedding sustainability at the core of transformation enables businesses to unlock long-term value and strengthen their competitive advantage. In our region, it’s clear that sustainability works best when it’s part of the bigger picture, integrated into the way businesses grow, innovate, and lead.”

The initiatives support an evolving financial landscape. Compared to 2023, 2.5 times more companies in the region now plan to access green loans and bonds, reflecting a broader shift toward sustainable financing models that support national and global environmental priorities.

Despite this momentum, organizations still face critical challenges in embedding sustainability into transformation projects. Findings from last year’s “Sustainability in the Middle East” report show that one in three executives cited a lack of internal skills and sustainability expertise as a significant barrier. Additionally, 22 percent of respondents pointed to the absence of supportive government policies, while 19 percent flagged conflicting regulations across jurisdictions, emphasizing the need for harmonized policy frameworks to enable cross-border progress.

Many businesses also struggle with integrating sustainability goals into broader corporate strategies, managing sustainability-related data effectively, and securing necessary funding for long-term initiatives. To address these barriers, PwC’s approach focuses on three core lenses: strategic, operational, and cultural, designed to embed sustainability into every aspect of transformation at scale.

The strategic lens aligns sustainability with transformation objectives to unlock financial returns and long-term value. The operational lens embeds sustainable practices into day-to-day processes, leveraging AI, data, and circular economy principles to enhance agility and reduce environmental impact. The cultural lens promotes a sustainability-first mindset, driven by leadership commitment, employee upskilling, and organizational change.

Together, these three lenses enable organizations to lead with purpose, ensuring sustainability is not just a parallel track but a central driver of successful, future-ready transformation projects. From ESG-aligned KPIs to sustainable value chains, the report provides a clear framework for businesses to drive impact.

As the region moves toward a low-carbon, inclusive economy, the report underscores the urgency for both private and public sector organizations to transition from ambition to execution, leading with purpose, agility, and impact.